Five Easy Steps for Mortgage /Refinance for Mobile Home.
Mobile homes are not built in sites but manufactured in factories and then taken to site by using transportation, where it may or may not be given a permanent foundation. In order to refinance/mortgage a mobile home. Firstly, we need to determine whether it’s a Real Property or a Personal Property. Real Property is Immovable. If the Mobile home is fixed to the land and obey guidelines of Federal National Manufactured Housing and Safety Code (1974 Act), then it would be financed as a real property. A house or anything not attached to land defined as personal property. If Mobile Home is owned but land is leased, it considered as a personal property. Land and home both owned by a particular person, considered as a real property. Each state has its own rules regarding mobile home. A property is real or personal, is considered, how home is attached with the land and whether it comes under state law or not.Mobile home must meet these criteria to qualify.
It’s not only the borrower to qualify for the loan, also mobile home needs to meets the criteria to qualify. Before you are refinanced by any lender. Lender will justified, is your Mobile Home meets the age and the size required for Mobile Home loan. Mobile home must not be older than 1976. Home built before 1976 rarely qualify for mortgage. A mobile home must meet the criteria of building standard mentioned by HUD (Housing and Urban Development).
Codes for HUD requirement :
- While giving the permanent foundation, as per HCD rules, need to record form 433 (A) which states, a personal property changes to a Real property by getting a permanent foundation.
- Home should be manufactured according to HUD construction rules. Which include its design, durability, strength, fire resistance, energy efficiency, transportability, and quality.
Borrowers Guidelines
- Home must be the main residence of the borrower.
- Lease of the home should be extending for five minimum years, if a loan is meant for a home in Mobile Park.
Credit Score.
Every borrower to qualify for a home mobile loan should meet the following criteria.
You must have excellent credit scores. Your credit scores describe your credit history. Consistency and timely payment of bills may vary your credit scores as well as shown in your credit history. Any missed payment will affect your credit scores. It is wisely advised that if you missed any payment or not paid in time, then you should pay at least consecutive six months to a year of On-Time payment before you apply for any mortgage / refinance. You must attain 680 or above credit score in order to get affordable interest rates. If your credit scores are less than 680. You can also drive to FHA loan. Whose minimum scores are 580 and you must be able to pay down payment @ 3.5% of the home price. Also with this you need to show a steady employment with regular flow of income.
Self Employed
If you are self employed, you need minimum two years of tax filling record to qualify your mobile home refinance or mortgage. The interest rate and refinance cost are higher of the higher credit risk to the lender.
Bankruptcy It seems to be very difficult to qualify for mortgage or refinance, if you filled Chapter 7. You must not have filled bankruptcy for the last 5 years.
If the above mentioned criteria are fulfilled by you then your dream to own Mobile Home may come true.
